Sou Hu Cai Jing·2025-07-02 01:55Trade Negotiations - The uncertainty surrounding trade negotiations between the U.S. and Japan has intensified, with President Trump expressing skepticism about reaching an agreement and threatening tariffs as high as 30% to 35% on Japanese imports, significantly higher than the previously announced 24% [2] Stock Market Volatility - On July 1, U.S. stock indices showed mixed results, with the Nasdaq down 0.82% and the Dow Jones up 400.17 points (0.91% increase). Notably, Tesla's stock plummeted over 5%, resulting in a loss of approximately $54.5 billion (around 390.5 billion RMB) in market value due to Trump's comments regarding Elon Musk [3] - Nvidia's stock also fell over 2% after internal insiders sold more than $1 billion in company shares over the past 12 months, raising concerns about its internal operations and executive confidence [3] - The Nasdaq Golden Dragon Index, which tracks Chinese stocks, rose 0.20%, while other popular Chinese stocks like Tiger Brokers and Futu Holdings declined, indicating a mixed performance in the market [3] Fiscal Policy - The U.S. Senate passed a comprehensive tax and spending bill on July 1, which now requires re-evaluation by the House of Representatives due to significant amendments. The outcome of this fiscal policy is uncertain and could have profound implications for the U.S. economy and global investors [4] Monetary Policy - Federal Reserve Chairman Jerome Powell indicated that while the U.S. economy is in good shape, the impact of tariffs will soon be reflected in inflation data. Most Fed members expect a rate cut later this year, with Goldman Sachs predicting cuts in September, October, and December, although the likelihood of a July cut depends on upcoming employment data [5]